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Prisoners of Myth is the first comprehensive history of the Tennessee Valley Authority from its creation to the present day. It is also a telling case study of organizational evolution and decline. Building on Philip Selznick's classic work TVA and the Grass Roots (1949), a seminal text in the theoretical study of bureaucracy, Erwin Hargrove analyzes the organizational culture of the TVA by looking at the actions of its leaders over six decades--from the heroic years of the New Deal and World War II through the postwar period of consolidation and growth to the time of troubles from 1970 onward, when the TVA ran afoul of environmental legislation, built a massive nuclear power program that it could not control, and sought new missions for which there were no constituencies. The founding myth of multipurpose regional development was inappropriately pursued in the 1970s and '80s by leaders who became "prisoners of myth" in their attempt to keep the TVA heroic. A decentralized organization, which had worked well at the grass roots, was difficult to redirect as the nuclear genii spun out of control. TVA autonomy from Washington, once a virtue, obscured political accountability. This study develops an important new theory about institutional performance in the face of historical change.
Reviews several issues pertaining to the Tennessee Valley Authority's (TVA) financial condition. Increasing competition in electricity markets led TVA management to develop a 10-year business plan in 1997 to position TVA to be more competitive. Among the objectives in the plan was reducing TVA's cost of power, primarily by cutting its $27.4 million debt in half by 2007. This report examines TVA's (1) progress in reducing debt and recovering the costs of deferred assets, (2) financial condition, including debt and fixed cost ratios, compared to that of other utilities, and (3) potential stranded costs, options for recovering them, and how they are linked to TVA's debt. Charts and tables.
The Tennessee Valley Authority (TVA) in the United States represents one of the few successful examples of comprehensive river basin development. Established to guide the development of the resources within the Tennessee River Basin, TVA operates a wide variety of water, power, economic development, and environmental programs within the region. This report presents an overview of TVA's growth and development, its institutions, and its operational programs.
When firms and people are located near each other in cities and in industrial clusters, they benefit in various ways, including by reducing the costs of exchanging goods and ideas. One might assume that these benefits would become less important as transportation and communication costs fall. Paradoxically, however, cities have become increasingly important, and even within cities industrial clusters remain vital. Agglomeration Economics brings together a group of essays that examine the reasons why economic activity continues to cluster together despite the falling costs of moving goods and transmitting information. The studies cover a wide range of topics and approach the economics of agglomeration from different angles. Together they advance our understanding of agglomeration and its implications for a globalized world.